Japan’s GDP contracted by 0.8 percent in July-September quarter

Tokyo, Nov 15 (EFE).- Japan’s gross domestic product (GDP) contracted 0.8 percent between July and September compared to the previous quarter amid a drop in domestic consumption, the government data showed Monday.

Nonetheless, the third-largest economy grew by 1.4 percent during the period compared to July-September 2020, preliminary GDP data showed.

The Japanese GDP had advanced 0.4 percent between April and June compared to the previous quarter and 7.6 percent year-on-year.

The growth was driven by the rebound in consumption and corporate investment, according to the revised data.

The quarterly decline in GDP exceeds the forecasts of most analysts.

Experts attribute the slump to the drop-off in household spending, estimated to be 1.2 percent, during a period when the main regions of the country were at the highest level of health alert due to the coronavirus crisis.

Exports, one of the engines of the national economy, fell 2.1 percent in the third quarter of the year due to the continued impact on the global demand and hitches in the supply chain because of the pandemic.

Domestic consumption and exports between April and June rebounded thanks to the improvement in the health situation in Japan.

Public investment decreased by 1.5 percent in July-September compared to the previous quarter, while corporate capital investment went down by 3.1 percent.

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